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I'm going to beat this drum again. When you have a product with negative externalities, like plastic packaging or fossil fuels, price those into the product thr
by eloff 7y ago
I'm going to beat this drum again. When you have a product with negative externalities, like plastic packaging or fossil fuels, price those into the product through a tax. Then, for bonus points, take that tax revenue and put it towards incentivizing greener solutions. The market will then solve your problem remarkably quickly and efficiently. Markets are fantastic, but they don't account for externalities so we need to add that in through regulation to keep a level playing field.
- haecceity 7y agoInternalizing the costs would make the commodities much more expensive. But expensive sugar drinks is better for our health.
- eloff 7y agoAnd expensive plastic and oil is good for the environment. Conversely cheaper things with positive externalities, like vaccinations would also be beneficial.
- antisthenes 7y agoJust going to plug this here, since what you're talking about is a very old and proven idea and some people intuitively look for the source: https://en.wikipedia.org/wiki/Pigovian_tax https://en.wikipedia.org/wiki/Pigovian_tax
- eloff 7y agoThanks! I've never heard of Pigovian tax before, it's nice to have the background of the idea.